We owe in unsecured debt about 18,000.00. Low compared to the national average.

However, the thing is…we have an adjustable predatorial mortgage on the house. We just got adjusted to 13 % and in June it can ( and will) go to 16%.

So, on a home that is 100,000.00. We are paying 1,350.00 principal and interest, in June it will be more than that. This is about 45 % of our income. The home MIGHT bring 125.00 , needs repairs.

so, he showed us how by filing we can save 1000.00 per month, for 5 years, with investing at 12-18 % we can buy a home for cash. then after about 10 more years we can retire worth about 1.2 million and not have to worry about social insecurity.

We obviously would have to rent a home, that is the hard part for me, i HAVE BEEN HOMELESS IN THE PAST AND ACTUALLY HAD A STILLBORN BABY DURING THE WHOLE PROCESS, so I am freaking out about finding a place to rent, we have kids, the kids have pets….etc… can’t change schools. I seem to shut down and go into a depression versus getting proactive. so I am scared to death about this. I don’t want to camp again. We got into this trouble from 9-11 and health issues with 2 hip replacements, off work for 18 months no pay…..stupid choices…bad decisions…etc.

What do you all think…??? Is it a no brainer? Should we let the house go too? We are being hounded by creditors and are behind in our mortgage.

I feel for you!! Deep breaths!

My DH and I just recently had to go through a similar thing; in the end we decided instead of feeling sooooo strapped for everything for the next 3-5 years with a chapter 13, that we would let the house go and file chapter 7. Boy oh boy did that decision eliminate ulcers in my life! We had time and we took it, to find a rental that would allow the kids and pets and all the kids summer toys!!!

I am feeling much better about my decision than I originally thought I would! It was difficult, but I like knowing that me and my family will not starve just to keep that particular house! With the economy as it is I got the feeling that most landlords were more apt to accept your family as is instead of asking you to get rid of the pets. People are barely able to afford one mortgage let alone two or more.

Good Luck to you and don’t stress, enjoy the holidays, enjoy your family and by all means do what is right for the entire family!!!